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Legendary value investors' secrets

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October 4, 2022

intrinsic value

Warren Buffett on intrinsic value

“Intrinsic value is an all-important concept that offers the only logical approach to evaluating the relative attractiveness of investments and businesses,” Warren Buffett said in the 2016 Annual Report of Berkshire Hathaway. “Intrinsic value can be defined simply: It is the discounted value of the cash that can be taken out of a business during

Market Value vs Intrinsic Value of a stock

To better understand what “intrinsic value” is for a stock, let’s first look at the stock’s price-earnings ratio , sometimes referred to as  the PER, the P/E ratio or just the P/E. The price (P) in the numerator refers to the price of the stock. The earnings (E) in the denominator refers to the earnings

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